Wednesday, February 29, 2012

Money Tree, Jobs, and Parallel Universes

Ms Jackson needs more money to study safety of hydraulic fracking.
More study is needed to understand the ecological impacts of the drilling technique known as hydraulic fracturing, U.S. Environmental Protection Agency Administrator Lisa Jackson said Tuesday in an effort to get Congress to fund more research into the practice.

The agency is expected later this year to release a draft of a study looking at the drilling technique's impact on water quality. It recently requested about $8 million in additional funding from Congress to work with other government agencies on more research.
Just give her a blank check. It will save time for Congressional staffers.

Meanwhile, in the real world, Utica oil and gas will create 65,000 jobs, $5 billion for the state of Ohio.

It is really, really difficult for me to believe that Congress will let Ms Jackson shut down fracking the oil and gas industry in the United States.  

No wonder Ms Olympia Snowe felt senators were living/working in parallel universes.

An Inconvenient Truth -- Wow, Is It Ever!

President Barack Obama's Secretary of Energy Stephen Chu uttered the kind of Washington gaffe that consists of telling the truth when inconvenient. According to Politico, Chu admitted to a House committee that the administration is not interested in lowering gas prices

Chu, along with the Obama administration, regards the spike in gas prices as a feature rather than a bug. High gas prices provide an incentive for alternate energy technology, a priority for the White House, and a decrease in reliance on oil for energy. 

The Heritage Foundation points out that hammering the American consumer with high gas prices to make electric and hybrid cars more appealing is consistent with Obama administration policy and Chu's philosophy. That explains the refusal to allow the building of the Keystone XL pipeline and to allow drilling in wide areas of the U.S. and offshore areas. 

The consequences of the policy are not likely to be of benefit to the Obama administration. The Republican National Committee has already issued a video highlighting the spike in gas prices and the failure of the administration to address the issue.
Another lost decade. 

Another Blog Being Added to the Webroll

I am adding this blog to the list of websites linked at the sidebar at the right near the bottom.

Earlier today on CNBC a talking head suggests WTI (Bakken light) could "crash" to $80/bbl in the near future. This post provides the same rationale.

The comments to the first linked blog post are as important as the post.

Another SeekingAlpha Article on the Bakken


February 29, 2012: Chu admits the administration sees high gasoline prices as impetus for "going green."

Original Post

I did not write the linked article, but it sure sounds like I might have.

Sometimes I think my rants are are a bit too harsh coming from someone who did not want to "step on any toes" in this blog, but after reading the linked article, I feel a bit better.

Here's the opening:
Three years ago I wrote an article on Seeking Alpha entitled Energy Secretary Steven Chu Should Be Fired for NatGas Views. His comments on being "agnostic" about natural gas transportation proved he was absolutely clueless about American energy policy. The subsequent Solyndra scandal showed why Chu was agnostic about natural gas - he was too busy figuring out how to funnel tax-payer money to Obama supporters.

But Chu is a minor player and President Obama must ultimately take the blame for his own refusal to fully embrace natural gas transportation. The result is that we now have WTI over $100/barrel, gasoline prices are over $3.50/gallon (and heading higher), we again hear the drumbeat of another war in the Middle East, and of course, the fragile U.S. economy could very well be chopped off at the knees (again) by its nemesis: a reliance on foreign oil.

But worst of all, we still have no alternative to gasoline refined from foreign oil. With oil trading at some 40 times natural gas on an energy equivalent basis, it is simply astonishing that the U.S. government is not developing an energy policy to take advantage of the phenomenal development.
The article goes on to discuss the Williston Basin and mentions some investment ideas.

This may be one of the better "commentaries" from SeekingAlpha in quite some time. Enjoy.

Investment Opportunity in the Bakken

I got a personal note to the effect that a developer has several large tracts in one of the "larger" cities in the Bakken, one of them ready to "build out" and working on several other properties.  The developer asked me to put him in contact with an individual who had written me last April (2011) who was looking to invest in the Bakken.

I have done that.

But based on his note, it sounds like he is interested in partners with serious money (6-figures) who might be interested in partnering with someone ready to develop additional residential (?) property in the Bakken.

You now know as much as I do. If interested, I will forward your e-mail to this individual. 

Nine (9) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, February 29, 2012 --

Operators: Petro-Hunt (3), Hunt (3), EOG (2), Whiting

Fields: Sanish, Painted Woods, Eagle Nest, Antelope, Antelope Creek, Bear Butte

Petro-Hunt has a permit for a wildcat in Williams County.

Seven (7) wells on DRL status reported an IP, including:
  • 19376, 1,560, XTO, Dakota 42X-36, McKenzie
  • 19621, 949, Hess, EN-Weyrauch A 154-93-2017H-2, Mountrail
  • 21654, 44 (no typo), Baytex, Johnson 31-30-161-99H 1PB, Divide; Three Forks; can't find completion data
  • 21691, 32, Petro Harvester, J Swenson 22-2, Burke, Madison Pool, vertical
Ten (10) wells reported as plugged or producing (in the Bakken, there are " no" dry holes)

An EOG permit in Clarks Creek was canceled (#20602, Clarks Creek 15-0805H, McKenzie)

About forty (40) wells were transferred from North Plains Energy to KOG, including two (2) salt water disposal wells.

A little bit for everyone in this report. Good luck to all.

Now if only someone can explain Baytex' strategy; they consistently get Bakken wells with an IP of about 50 bbls and they keep on drilling in Burke Divide County (see first comment).

Graphic: What Development of the Bakken Will Look Like -- Below Ground

Don sent me this link:

It's a PDF from the NOG corporate website. When you get there, zoom in on the map, so you can see individual wells. I don't know about you, but it absolutely blows me away to see all these wells. One gets the same picture from the NDIC GIS map server, but somehow this PDF gives you an even better WOW factor.  

The legend/key for the map is in the lower left-hand corner.

Wouldn't it be great if every operator did this! I think there's an APP for that.

KOG Reports a Gusher -- Poe Oil Field -- The Bakken, North Dakota, USA


October 29, 2017: update of Whiting's Koala wells in Poe oil field.

October 29, 2017: a thrice-fracked Koala well.

October 29, 2017: update of an old Koala well

April 5, 2012: SM wells in Poe oil field.

Later: a reader asked about the "H3" designation, suggesting this may mean a Three Forks well. I went back and checked the well files and he/she is exactly correct. All three "H3" wells (not confidential) were Three Forks wells; one can assume the others were middle Bakken wells.


Note: KOG wells with the "H3" designation: Three Forks 

2018 (as of October 30, 2018)
35671, loc, Zavanna, Stranger ... TFHXE,
35670, loc, Zavanna, Stranger ... H,
35669, loc, Zavanna, Stranger ... TFH,
35668, loc, Zavanna, Stranger ... H,
35667, loc, Zavanna, Stranger ... TFH,
35666, loc, Zavanna, Stranger ... H,
35665, loc, Zavanna, Stranger ... TFH,

2017 (none in 2017)

2016 (list is complete)
32932, 1,161, Whiting, Koala 31-2H, Poe, t3/18; cum 200K 7/19;
32931, 1,980, Whiting, Koala 31-2TFH, Poe, t3/19; cum 130K 7/19;
32930, 3,066, Whiting, Koala 31-2-2H, Poe, t2/18; cum 253K 7/19;
32714, 2,878, Statoil, Patent Gate 7-6-XE-1H, Poe, t2/18; cum 69K 7/19;
32590, 978, Whiting, Koala 21-2TFH, Poe, t2/18; cum 168K 7/19;
32589, 1,412, Whiting, Koala 21-2TFHU, Poe, t2/18; cum 169K 7/19;
32550, 2,092, Whiting, Koala 31-25-3H, Poe, t8/18; cum 208K 7/19;
32549, 4,214, Whiting, Koala 31-25-2H, Poe, t8/17; cum 201K 7/19;
32548, 3,438, Whiting, Koala 31-25-2TFH, Poe, t7/17; cum 171K 7/19;
32547, 3,559, Whiting, Koala Federal 31-25H, Poe, t8/17; cum 224K 7/19;
32546, 2,774, Whiting, Koala Federal 31-25TFH, Poe, t8/17; cum 151K 7/19; (#21303 -- not much of a bump; #20319 -- big bump; #20413 -- huge bump)

2015 (list is complete)
32287, 2,527, Whiting, Koala 44-31-2TFH, Poe, t12/16; cum 205K 7/19;
32266, 2,356, Whiting, Koala 44-31H, Poe, t12/16; cum 132K 6/17;
32265, 1,551, Whiting, Koala 44-31-3TFH, Poe, t1/17; cum 91K 6/17;
32264, 2,024, Whiting, Koala 44-31TFH, Poe, t2/17; cum 94K 6/17;
32075, 2,388, Whiting, Koala 14-32HU, Poe, t12/16; cum 173K 6/17;
32074, 2,025, Whiting, Koala 14-32-2H, Poe, t12/16; cum 125K 6/17;
31409, 2,514, Whiting, Koala 44-5TFHU, t11/16; cum 263K 7/19;
31152, PNC, Whiting, Loomer
31151, PNC, Whiting,
31149, 2,585, Whiting, Loomer 44-33 2H, Poe, t2/17; cum 142K 6/17; 50K+ 3/17;
31148, 3,005, Whiting, Loomer 44-33-2TFH, Poe, t2/17; cum 95K 6/17; 
31108, 2,292, Whiting, Koala 44-5-3H, t11/16; cum 162K 6/17;
31107, PNC, Whiting,
31106, 1,810, Whiting, Koala 44-5-2H, t11/16; cum 196K 12/17;
31105, PNC, Whiting, Koala 44-5H,
31066, 636, Oasis/SM Energy, Rini 1X-16HB, t6/16; cum 74K 6/17; off-line as of 4/17; still off-line, 12/17;
31065, 707, Oasis/SM Energy, Steve 1-16H, t6/1;6; cum 146K 6/17;
31064, 704, Oasis/SM Energy, Rich 1X-16HA, t6/16; cum 130K 6/17;
30891, conf --> loc, Oasis/SM Energy,
30890, conf, Oasis/SM Energy, Stenberg 4X-9H,
30889, conf, Oasis/SM Energy,Stenberg 5-9H,
30791, 348, Oasis/SM Energy, Ashley 13X-9H, t6/16; cum 69K 6/17; a poor well;
30790, 910, Oasis/SM Energy,Stacey 13-9H, t6/16; cum 201K 6/17;

Issued in 2014 (list is complete)
  • 30271, 601, Oasis/SM Energy, Stenehjem 14-9H, t6/16; cum 148K 6/17;
  • 30270, 261, Oasis/SM Energy, Stenehjem 14X-9HA, t7/16; cum 55K 6/17; a poor well
  • 29495, 2,442, Whiting, Koala 13-31-25-1H, t3/15; cum 189K 6/17;
  • 29341, 2,264, Whiting, Koala 13-31-30-4H3, 4 sections, t3/15; cum 113K 6/17;
  • 29340, 2,447, Whiting, Koala 13-31-30-4H, t3/15; cum 201K 6/17;
  • 29339, 1,390, Whiting, Koala 13-31-30-3H3, t3/15; cum 125K 6/17;
  • 28892, 783, Oasis/SM Energy, Stenehjem 15-9HA, t6/16; cum 124K 6/17;
  • 28891, 517, Oasis/SM Energy, Stenehjem 15X-9H, t6/16; cum 67K 6/17;  a relatively poor well;
  • 28201, 545, Oasis/SM Energy, Dallas 2X-13H, t9/14; cum 76K 6/17; a poor well;
  • 28200, 732, Oasis/SM Energy, Calvin 2-13H, t9/14; cum 195K 6/17;
  • 28198, 806, Oasis/SM Energy, Jesse 14X-12H, t7/15; cum 157K 6/17;
  • 28197, 981, Oasis/SM Energy, Luke 14-12H, t7/15; cum 199K 6/17;
  • 28196, 722, Oasis/SM Energy, Phylis 14X-12H, t7/15; cum 149K 6/17;
  • 27825, 2,351, Whiting, Koala 4-4-28-4H3, t12/14; cum 150K 6/17;
  • 27410, 2,444, Whiting/KOG, Koala 4-4-28-3H3, t11/14; cum 193K 6/17;
  • 27409, 1,672, Whiting/KOG, Koala 4-4-28-4H, t3/15 cum 185K 6/17;
  • 27408, 3,272, Whiting/ KOG, Koala 4-4-29-1H, t11/14 cum 205K 6/17;
  • 27407, 2,179, Whiting/KOG, Koala 4-4-31-13H, t9/14; cum 172K 6/17;
  • 27406, 1,988, Whiting/KOG, Koala 4-4-6-4H3, Poe, t9/14; cum 145K 6/17;
  • 27405, 1,682, Whiting/KOG, Koala 4-4-6-4H, t8/14; cum 178K 6/17;

Issued in 2013
  • 26536, 1,302, CLR,Jerry 6-8H, t11/14; cum 211K 6/17;
  • 26535, 811, CLR, Jerry 7-8H, t11/14; cum 169K 6/17;
  • 26531, 903, CLR, Jerry 4-8H, t11/14 cum 121K 6/17;
  • 26530, 999, CLR, Jerry 5-8H, t11/14; cum 156K 6/17;
  • 26526, 784, CLR, Jerry 3-8H, Poe, t10/14; cum 145K 6/17;
  • 26525, 994, CLR, Jerry 2-8H, Poe, t10/14; cum 187K 6/17;
  • 26244, 1,955, Whiting/KOG, Koala 16-32-29-1H, Poe, t6/14; cum 181K 6/17;
  • 26243, 1,88, Whiting/KOG, Koala 16-32-29-2H3, Poe, t6/14; cum 136K 6/17;
  • 26136, 1,041, SM Energy, Elery 1-13H, Poe, t6/14; cum 131K 6/17;
  • 26135, 705, SM Energy, Doris 1X-13H, Poe, t1/14; cum 113K 6/17;
  • 25776, 3,043, Statoil, Bugs 27-22 7H, Poe, t7/14; cum 202K 6/17;
  • 25775, PNC, Statoil, Bugs 27-22 2TFH, Poe,
  • 25519, 846, Oasis/SM Energy, Walla 13-19H, t12/13; cum 203K 6/17;
  • 25518, 655, Oasis/SM Energy, Walla 13X-19H, t11/13; cum 170K 6/17;
  • 25002, 798, Oasis/SM Energy, Annie 12X-18HA, t11/13; cum 189K 6/17;
  • 25001, 907, Oasis/SM Energy, Annie 12-18H, t11/13; cum 176K 6/17;
  • 24957, 894, Oasis/SM Energy, Cade 12-19HA, t11/13; cum 210K 6/17;
  • 24956, 764, Oasis/SM Energy, Cade 12X-19H, t11/13; cum 157K 6/17;
  • 24955, 915, Oasis/SM Energy, Cade 12-19HB, t11/13; cum 175K 6/17;
  • 24696, PNC, Zavanna, Usher 28-21H, Poe; status date 2/25/15;
Issued in 2012
  • 24470, 3,552, Statoil/BEXP, Viking 16-15 3H, Poe, t9/13; cum 203K 6/17;
  • 24469, 2,521, Statoil/BEXP, Viking 16-15 2TFH, Poe, t9/13; cum 161K 6/17;
  • 24156, 1,790, Whiting/KOG, Koala 16-32-29-2H, Poe, t6/14; cum 201K 6/17;
  • 23842, PNC, BEXP, Bugs 27-22 3TFH, Poe, 
  • 23841, PNC, BEXP, Bugs 27-22 $H, Poe,
  • 23673, 895, Whiting/KOG, Koala 2-2-11-15H3, Poe, t11/13; cum 121K 6/17;
  • 23672, 2,642, Whiting/KOG, Koala 2-2-11-15H, Poe, t11/13; cum 260K 6/17;
  • 23671, 1,466, Whiting/KOG, Koala 2-2-11-15H3, Poe, t6/14; cum 141K 6/17;
  • 23670, 1,043, Whiting/KOG, Koala 8-5-6-5H3, Poe, t8/13; cum 175K 6/17;
  • 23669, 2,660, Whiting/KOG, Koala 8-5-6-4H, Poe, t8/13; cum 234K 6/17;
  • 23668, 2,432, Whiting/KOG, Koala 8-5-6-4H3, Poe, t9/13; cum 192K 6/17;
  • 23526, 885, Oasis/SM Energy, Ceynar 4-18HB, Poe, t2/13; cum 201K 6/17;
  • 23525, 1,096, Oasis/SM Energy, Ceynar 4X-18H, Poe, t3/13; cum 149K 6/17;
  • 23524, 1,004, Oasis/SM Energy, Ceynar 4-18HA, Poe, t2/13; cum 191K 6/17;
  • 23119, 3,426, Statoil/BEXP, Cora 20-17 5H, Poe, t5/13; cum 193K 6/17;
  • 23118, 1,563, Statoil/BEXP, Cora 20-17 3TFH, Poe, t5/13; cum 117K 6/17;
  • 23117, 3,251, Statoil/BEXP, Cora 20-17 4H, Poe, t7/14; cum 172K 6/17;
  • 23116, 2,176, Statoil/BEXP, Cora 20-17 6TFH, Poe, t5/13; cum 146K 6/17;
  • 22541, 951, Statoil/BEXP, Cora 20-17 2TFH, Poe, t7/12; cum 166K 6/17;
  • 22328, 927, Zavanna, James 41-3SH, Poe, t10/12; cum 216K 6/17;
Issued in 2011
  • 21992, 2,579, Whiting/KOG, Koala 15-31-30-3H, t5/12; cum 296K 6/17;
  • 21694, 3,347, Statoil/BEXP, Cora 20-17 1H, Poe, t7/12; cum 218K 6/17;
  • 21307, dry, Whiting/KOG, Koala 15-31-30-3H3, Poe,
  • 21306, 2,431, Whiting/KOG, Koala 15-31-30-2H, t5/12; cum 279K 6/17;
  • 21303, 2,227, Whiting/KOG, Koala 2-25-36-16H3, t12/11; cum 226K 6/17;
  • 21258, 962, Oasis/SM Energy, Nora 13-9H, Poe, t12/11; cum 2319K 6/17; see this post;
  • 21034, 3,499, Statoil/BEXP, Bugs 27-22 1H, Poe, t3/12; cum 261K 6/17;
  • 20898, 472, CLR, Jerry 1-8H, Poe, t11/11; cum 201K 6/17;
  • 20383, 2,514, Whiting/KOG, Koala 3-2-11-13H, Poe, t7/11; cum 332K 6/17;
Original Post

Although not a record setter, this looks like a nice well based on its IP:
  • 21303, 2,227, Kodiak, Koala 2-25-36-16H3, Poe, Bakken, Three Forks, 25 stages, 3.3 million lbs; 23 stages using ISP; t12/11; cum 226K 6/17; off-line as of 5/17;
This is nice to see after yesterday's earnings release.

The Poe oil field is an irregularly shaped field, relatively small, only 30 sections or so, right in the middle (or slightly to the west) of the bull's eye of the Bakken. The field is about 7 miles northeast of Alexander, North Dakota. It sits immediately southeast of the Camp oil field and immediately southwest of Banks oil field, two fields that have produced some huge wells.

Which reminds me, but I can't find it, so I guess I haven't done it. Here's a list of the KOG Koala wells:
  • 19301, 2,526, Whiting/KOG, Koala 9-5-6-5H, Poe, Bakken, s9/10; t4/11; AL; cum 284K 6/17; huge jump in production, 12/16;
  • 19651, 1,919, Whiting/KOG, Koala 9-5-6-12H3, Wildcat, Bakken, t4/11; AL; cum 320K 6/17;Three Forks; 22 stages; 2.8 million lbs sand treated with CarboProp; huge jump in production 12/16;
  • 19779, 1,353, Whiting/KOG, Koala 154-97-15-34-27-2H, (was Ursa Resources, Sorenson 34-27 1H); t2/13; cum 157K 6/17;
  • 19961, 2,816, Whiting/KOG, Koala 3-2-11-14H, Poe, Bakken; s12/10; t7/11; GL; cum 399K 6/17;
  • 20020, PNC, Whiting/KOG, Koala 13-36-25-3H, Poe, Bakken, t12/11; cum 2K 4/12; 
  • 20319, 113, Whiting/KOG, Koala 2-25-36-15H, Poe, Bakken, s5/11; t12/11; AL; cum 274K 6/17;
  • 20383, 2,514, Whiting/KOG, Koala 3-2-11-13H, Poe, Bakken, s2/11; t7/11; AL; cum 332K 6/17;
  • 20413, IA/702, Whiting/KOG, Koala 2-25-36-14H3, Poe, Bakken; s7/11; t1/12; AL; cum 58K 1/17; Three Forks; full report not submitted; 18 stages; 2.2 million lbs ceramics;
  • 21303, 2,227, Whiting/KOG, Koala 2-25-36-16H3, Poe, Bakken, s8/11; t12/11; cum 226K 6/17; off-line as of 5/17;
  • 21306, 2,431, Whiting/KOG, Koala 15-31-30-2H, Poe, Bakken, t5/12; cum 279
    K 6/17;
  • 21307, PA/dry, Whiting/KOG, Koala 15-31-30-3H3, Poe, Bakken, 
  • 21308, 2,461, Whiting/KOG, Koala 14-32-29-3H, Banks, Bakken, t9/12; cum 301K 6/17;
  • 21309, 2,027, Whiting/KOG, Koala 14-32-29-2H3, Banks, Bakken, t9/12; cum 238K 6/17;
  • 21468, 2,522, Whiting/KOG, Koala 14-32-29-4H3, Banks, Bakken, t9/12; cum 269K 6/17;
  • 21992, 2,579, Whiting/KOG, Koala 15-31-30-3H, Poe, Bakken, t5/12; cum 296K 6/17;
  • 90200, SWD, Whiting/KOG, Koala 15-31 SWD, Poe, SWD

Enbridge CEO on Jim Cramer's Mad Money Tonight, Leap Day, 2012

CNBC video here.

Sempra Energy -- Absolutely Nothing To Do With the Bakken --

Hitting 52-week high; raises dividend from 48 cents to 60 cents. 

Press release here.
Sempra Energy said its fourth-quarter profit rose 4 percent, as rising utility revenues and lower natural gas prices helped boost income.

Sempra, which operates traditional utility companies and builds energy infrastructure, also said Tuesday it will boost its quarterly dividend by 25 percent as the company's performance in 2011 beat its own financial objectives.

The company said revenue from its utilities rose 28 percent during the quarter, reaching $2.4 billion. That helped offset a decline in revenue from its much smaller segment of other energy related businesses, which fell 55 percent to $215 million. 
Transcript here

Market Watch story here.
Sempra Energy shares rose 1.6% after it said its fourth-quarter profit increased to $292 million, or $1.21 a share, from $280 million, or $1.15 a share, in the year-ago period. Revenue rose to $2.6 billion, from $2.35 billion. Wall Street analysts expected the power firm to earn $1.06 a share, on revenue of $2.35 billion, according to a survey by FactSet Research. The company OK'd a 25% increase to its quarterly dividend 60 cents, from 48 cents a share. [Comment: yield greater than 3% prior to the increase, and as much as 4% earlier it the year.]

20-20 hindsight: Wow! Look what Forbes/analysts were expecting -- $1.06. Analysts were off by a Norwegian mile.

Note: this is not an investment site; see disclaimer at the sidebar at the right. I have owned SRE since I began investing back in 1984, and continue to accumulate shares but will be making no additional purchases based on this quarterly report. 

For Investors Only: First Solar Continues to Collapse -- CNBC -- Connection to Enbridge

Some idle chatter on CNBC at 9:32 a.m. EST, paraphrasing -- First Solar continues to collapse; First Solar has one of the largest investments from Department of Energy.

I see First Solar is down another 10 percent at the open, down about $3 to $33 (numbers rounded).

The 52-week high for First Solar was $160 with a previous 52-week low of $42.

So, although not yet bankrupt, I guess we can add First Solar to the list of companies that got huge cash investment from US DOE and is now in trouble.

By the way, Enbridge is a big investor in solar and wind.  Enbridge has partnered with First Solar on some major solar projects.

Except as a tax loss, and credits for solar investment, it looks like Enbridge misstepped when it ventured into solar energy.

I just keep thinking how well the economy could be doing if the country had an energy plan, other than to a) kill coal; b) slow-roll the oil and gas industry; and, c) funnel money to solar and wind.

Magnum Hunter Beats on Revenues

From Yahoo!InPlay:
Magnum Hunter reports EPS in-line, beats on revs; provides early Q1 production figures: Reports Q4 (Dec) adj. loss of $0.05 per share, in-line with the Capital IQ Consensus Estimate consensus of ($0.05); revenues rose 404% year/year to $49.1 mln vs the $46.27 mln consensus.

Average daily production increased 547% for the three months ended December 31, 2011 to 9,124 barrels of oil equivalent per day (37% oil/liquids) as compared to the 1,410 Boepd reported for the three months ended December 31, 2010.

The daily production rate in Q4 represents a 73% increase over the production rate of 5,270 Boepd reported during Q3, demonstrating success from the co's organic drilling programs in each of its operating regions. The co had a year-end 2011 exit rate in excess of 12,500 Boepd.

The co averaged ~13,000 Boepd for the month of January 2012 and is currently producing above 13,000 Boepd. The co expects to exit 2012 in excess of 16,000 Boepd, with ~55% of the production mix being oil/liquids. Average daily production for fiscal year 2011 was 5,510 Boepd (43% oil/liquids) which represents a 324% increase over the 1,301 Boepd reported for fiscal year 2010. This significant production increase is due primarily to the drilling and completion success achieved with new wells in each of the co's operating regions.

NOG Releases Earnings

Press release link

Let me know if anyone else found it difficult to find earnings/share in the press release. Net income of 65 cents/share in 2011 vs 14 cents in 2010.

Proved reserves, which is most important single data point, all things being equal: increased 200% (some numbers rounded) to almost 50 million bbls of crude oil equivalent
  • More than doubled (120%) production 2011 over 2010; 20% increase qoq in 4Q11
  • Average sales price of crude oil in 2011: $86 (realized price: $76)
  • Average sales price of crude oil in 2010: $68 (realized price: $66)

This was most notable, similar to what other Bakken companies are experiencing, increased expenses:
  • Production expenses per boe, 2011: $6.77
  • Production expenses per boe, 2010: $3.70